In one of the largest commercial deals recently, the Secretary of State of Foreign Commonwealth and Development Affairs (FCDA) of the UK government has bought office spaces in Mumbai's commercial hub Lower Parel for Rs 101.2 crore, according to documents accessed by Propstack.
The 12 office units sprawl more than 14,883 sq ft in the One Lodha Place building. The seller is One Place Commercial Private Ltd, a subsidiary of listed real estate developer Lodha Group.
The sale agreement was signed on May 5 and FCDA paid a stamp duty of Rs 100, the document showed.
The sale agreement was signed by Harjinder Singh Kang, Trade Commissioner for South Asia and Deputy High Commissioner for Western India. Kang leads the UK’s trade and investment ties with South Asia. He also serves as British Deputy High Commissioner for Western India based in Mumbai --- with overall responsibility for the states of Maharashtra, Goa and Madhya Pradesh, according to reports.
A query sent to Lodha Group and FCDA did not get any response. While it is unclear for the purpose of the transaction, sources suggest that it might be a move by the UK government to expand its functional office spaces in India for diplomatic reasons.
Foreign embassies, diplomats or Consulate Generals can purchase and sell any property other than agricultural land or plantation property or farmhouse in India with prior clearance from the Ministry of External Affairs. However, citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan can only acquire or lease properties in India with prior permission of the Reserve Bank, according to an MEA notification. Currently, there are no restrictions on the number of residential/commercial properties that can be purchased by NRI or Person of Indian Origin (PIO).
However, a foreign national of non-Indian origin, resident outside India cannot purchase any property in India. But, he/she may take residential accommodation on lease for a period of 5 years or less.
Booming real estate in Lower Parel
According to a recent ANAROCK report, key areas in Mumbai Metropolitan Region (MMR) and Delhi NCR also saw average prices surge between 13-27 percent in the last three-year span. In NCR’s Greater Noida West, average prices have increased by 27 percent in the period. In MMR, Lower Parel saw average prices appreciate by 21 percent.
Lower Parel is one of the most popular commercial suburbs of Mumbai --- which is also a key shopping destination in the city. Last year December, a subsidiary of Piramal Enterprises acquired an office space in Lower Parel, Mumbai for Rs 875 crore.
And in October, Surinder Chawla, Managing Director of Paytm Payments Bank Limited, purchased a duplex apartment measuring 2,516 square feet (sq ft) carpet area in a luxury tower named Indiabulls Sky Forest in Central Mumbai's Lower Parel area for Rs 20 crore. The flat, located on the higher floor, comes with 972 sq ft of exclusive area along with 2,516 sq ft of carpet area.
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